As technology continues to evolve and grow in importance, modern businesses employ diverse marketing and advertising strategies to reach potential customers and close sales. Stretching from traditional media to digital marketing online and in social media, marketing and advertising seem to be everywhere. Part of this reality is due to the effectiveness of marketing and advertising strategies in driving success for companies of every shape and size. 

While sometimes used interchangeably, there are actually many differences between marketing and advertising. In basic terms, marketing is the process of identifying customer needs and determining how best to meet those needs. In contrast, advertising is the exercise of promoting a company and its products or services through paid channels. In other words, advertising is a component of marketing. But the differences do not end there. 

What Is Marketing and Why Is It Important?

Marketing is a business practice that involves identifying, predicting and meeting customer needs. Effective marketing strategies help businesses isolate how best to serve their client base, while maximizing revenue at the same time. In business-to-consumer (B2C) marketing, marketing efforts are directed toward consumers. In business-to-business (B2B) marketing, marketing efforts are directed toward other businesses.

In both B2C and B2B efforts, there are several important factors to consider when developing a marketing strategy. More specifically, savvy marketers will evaluate:

• Orientation — Marketing orientation refers to the guiding principles of the business itself, often referred to as business philosophy or corporate culture. Typically, organizations will decide to orient around product, sales, production or marketing. 
• Mix — The marketing mix functions as a decision-making guide for a company’s marketing efforts. A modern marketing mix will usually focus on the four Cs: client/customer, cost, convenience and communication. 
• Environment — The marketing environment refers to every factor that could impact a company in the execution of marketing strategy or decision-making. In this vein, companies should consider the internal environment within their organization. External factors—such as macro and micro environments—are also important to consider. 
• Market — The target market refers to the characteristics of a company’s ideal client case. Research and segmentation efforts can help isolate the geographic and demographic factors that will help a company market and sell its products or services.

After a careful evaluation of the orientation, mix, environment and market, it is possible to assess the costs and benefits of various marketing methods and strategies. This part of the planning process is vitally important, as there are many different ways a business can engage in marketing efforts.